In a letter sent to Acting Commissioner of the IRS Douglas O’Donnell, NAICU urged the agency to expedite consideration of backlogged tax returns filed by many NAICU-member institutions that claimed the employee-retention tax credit (ERC).  Twenty-seven member associations joined NAICU in signing the letter and supporting this effort.
 
The ERC was created and extended in pandemic stimulus bills to assist employers who had to suspend services partially or fully or who experienced significant revenue loss as a result of the pandemic.  It was available through the 3^rd filing quarter of 2021 and was eliminated for the 4^th quarter and beyond as part of the American Rescue Plan by the Biden Administration. 
 
While many NAICU member institutions both qualified for and filed for the credit, many reported a significant delay in receiving funds from the IRS.  After hearing from institutions reporting delays of many months, and even a year or more, NAICU contacted the IRS to push for the consideration of these returns.  Evidently, employers across the country are also seeing significant delays in receiving the credit and this is due in large part to the paper-filing requirement of amended returns.  Although, electronic returns are also delayed. 
 
In communicating with the IRS, NAICU emphasized that colleges are economic engines in many small communities across the country. The pandemic has hit colleges and local communities hard, and the stimulus provisions from the federal government have been crucial to institutions emerging from the pandemic with some level of economic health. In addition to the direct funding colleges and students received via the Department of Education, the employer tax benefits have also been a critical lifesaver.  Hopefully, the pressure will help expedite these returns.